Question
For each cost item below, indicate whether it would be variable or fixed with respect to the number of units produced and sold: and then
For each cost item below, indicate whether it would be variable or fixed with respect to the number of units produced and sold: and then whether it would be a selling cost, an administrative cost or a manufacturing cost. If it is a manufacturing cost, indicate if it is a direct cost or an indirect cost with respect to the units of product (Ex provided #1 & #2)
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| Variable or | Selling | Administrative | Manufacturing (Product) Cost | |
| Cost Item | Fixed | Cost | Cost | Direct | Indirect |
1. | Property taxes, factory | F |
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| X |
2. | Boxes used for packaging detergent produced by the company | V |
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| X |
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3. | Salespersons commissions |
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4. | Supervisors salary, factory |
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5. | Depreciation, executive autos |
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6. | Wages of workers assembling computers |
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7. | Insurance, finished goods warehouses |
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8. | Lubricants for production equipment |
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9. | Advertising costs |
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10. | Microchips used in producing calculators |
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11. | Shipping costs on merchandise sold |
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12. | Magazine subscriptions, factory lunchroom |
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| Variable or | Selling | Administrative | Manufacturing (Product) Cost | |
| Cost Item | Fixed | Cost | Cost | Direct | Indirect |
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13. | Thread in a garment factory |
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14. | Executive life insurance |
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15. | Ink used in textbook production |
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16. | Fringe benefits, materials handling workers |
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17. | Yarn used in sweater production |
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18. | Wages of receptionist, executive offices |
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